This is the foreign section of my annual questionnaire. I've been bitten twice when clients did not answer the questions correctly. I want to ask the appropriate questions both for them and for me. I put this together several years ago. Suggestions? Feel free to use any or all of this in your questionnaire, if you want.
Congress and the IRS have been in an uproar over foreign issues for several years. There are several disclosure forms that are at issue, and the penalties for not filing any required form are enormous. Some failures to file also cause the statute of limitations on your return to remain open. The following questions are intended to address specific forms that might be required. Securities maintained in an account with a financial institution located in the United States are not an issue. If you have any foreign assets or foreign relationships that are not covered by these questions, please be sure to call the issues to my attention.¶
¶
[YNHEADING]¶
¶
[YNBOX]Did you have an interest in or signature or other authority over a financial account in a foreign country, such as a bank account, securities account, or other financial account? In other words, do you have the authority, alone or with another, to control the disposition of assets held in a foreign financial account? ¶
¶
[YNBOX]Did you receive a distribution from, or were you the grantor of, or transferor to, a foreign trust?¶
¶
[YNBOX]Do you have an interest in a foreign estate?¶
¶
[YNBOX]Do you own any foreign stocks or securities issued by a non-US person or entity that are located somewhere other than in an account with a United States financial institution?¶
¶
[YNBOX]Do you have a foreign retirement account?¶
¶
[YNBOX]Do you own real estate in a foreign country?¶
¶
[YNBOX]Do you have a financial instrument or contract held for investment that has an issuer or counterparty that is other than a U.S. person? This may be in the form of an interest rate swap, currency swap, basis swap, interest rate cap, interest rate floor, commodity swap, equity swap, equity index swap, credit default swap, or similar agreement with a foreign counterparty.¶
¶
[YNBOX]Do you own a capital or profits interest in a foreign partnership?¶
¶
[YNBOX]Did you make any contributions this year to a foreign partnership or corporation?¶
¶
[YNBOX]Are you an officer or director of a foreign corporation?¶
¶
[YNBOX]Do you own a note, bond, debenture or other form of indebtedness issued by a foreign person?¶